5 Ways Market Research Can Save You Money
You probably already know market research provides detailed and relevant information on things like consumer wants, needs, and spending behaviors. It’s the basis for competitor profiles and industry breakdowns. But, aside from providing valuable insight into your business, did you know market research actually saves you money? No joke.
Conducting some well-targeted, thorough research in the early stages of running a business can actually save you money in the long term. Not understanding your customers will cost you much more than any research project.
Too often, business owners rely on gut feeling instead of informed decisions shaped by good research. When you invest in research, you improve decision-making prowess and reduce your risk.
By gaining insight into your competitors, your market, your customers and their behaviors, you can:
1. Create Better Products
So you think your new product is a hit – but are you sure? Before launching a new product or service is one of the best times to use market research. Because the simple truth is, better products sell more.
You can use market research to test new ideas, products, or features to see how customers react. You can test for safety or even find out how much a customer would pay for a particular product or service. If you’re a service-based business, research can help to improve your service and tailor it to your ideal customer.
If your product isn’t gaining traction, figure out why and redirect. If your product is already successful, figure out how to make it even better and sell more.
“Targeted research improves your decision-making capabilities and reduces your risk.”
2. Market Smarter (and More Effectively)
Market research takes the guesswork out of marketing. Gain a clear picture of who your customers are, what they love and don’t love, and where they hang out.
When you give customers exactly what they want and have the right messaging, you’ll not only increase conversions, but you’ll build brand love and customer loyalty. Repeat customers cost less to acquire and they spend 67% more on average than new customers, by the way.
A customized research project can answer your specific questions and help you ask the ones you hadn’t even thought of.
3. Understand Your Competition
Understanding the competition is the only way to beat them. Use competitive intelligence to make your own products, services, and branding stand out. Not only can you learn how to price your product competitively, you can also learn how to do things better than others in your industry.
Find out what others in your category are doing to pull customers away from you – or better yet, find out where they are falling short and then fill that hole.
4. Stay Current
These days, life moves pretty fast. What was hot a few years ago or even a few months ago may be a failure today. To increase the chances of success, a business must anticipate and react to the ever-changing worlds of business and marketing.
Through the use of surveys, studies or focus groups you can use to stay aware of your customers’ evolving needs, market trends, and more.
5. Identify New Opportunities and Grow Smarter
If your business or product isn’t gaining traction right away, don’t give up! Consider using market research to identify new opportunities or avenues you may have missed. Whether you need to rebrand, rename, or redesign your product, a detailed research report can help you determine where to go next.
If your business is successful, but you’re not sure of the smartest way to grow, research can help. Evidence can help identify lucrative opportunities you may not have considered. Data helps you determine your best income streams and most successful initiatives, so you can focus your energy on what brings results, instead of chasing your tail.
